Opinions
John Hood
Credit Suisse VelocityShares Daily 2x VIX Short Term
TVIX-Q
DON'T BUY
Feb 17, 2015
$2.580
Stock price when the opinion was issued
E.T.F.'s
It's the ideal tool to help you make quicker, more informed decisions for
managing and tracking your investments.
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BUY
A good portfolio hedge? Yes. With this, you're buying the VIX x 2. TVIX is a short-term vehicle. You hedge because you feel the markets are irrational now, expecting the market to move down which spark the volatility, which gives you double the bang for your back. But keep a very close eye on this as you execute it.
E.T.F.'s
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This is betting on 2X volatility, but volatility is volatile enough. This is a gamble, not investing. Even if you are correct in terms of the direction of the trade, you can still lose money because of the effect of leveraging and prices being changed every day. These things should only be held for 2-3 days at most.